New Pre-tax Medical Premium Payment Option for Small Companies
Effective January 1, a new rule allows companies with less than 50 employees who do not offer a group health insurance plan to contribute pre-tax dollars to their employees for medical expenses and/or premiums for individual health insurance plans.
“This opens the door for a company to say, ‘I want to help my employees with their healthcare costs, even though I am not able to offer them a group policy,’” says Leslie Day, Director of Human Resources Consulting Services for Precision Payroll.
The contribution is limited to $4,950 for individual coverage and $10,000 for family coverage, and must be offered to all full-time employees.
The 21st Century Cures Act, signed into law on December 13, 2016, is what creates this new form of HRA, called the qualified small employer health reimbursement arrangement (QSEHRA).
There are a few caveats, one being that QSEHRA may impact an individual’s eligibility for a premium subsidy (tax credit) for Marketplace coverage. Also, all full-time employees must be provided this benefit.
Says Day, “This bill allows small employers to assist employees by reimbursing them for health care expenses without the employee paying taxes on it.”
New I-9 Form
As of January this year, there is a new I-9 form, which can be found on the Resources page of Precision Payroll's website
. It's critical that companies have properly completed I-9 forms for all of their employees. While always important, the need is heightened because of the ongoing issues with immigration in the news.
Employment Law Poster Fines Increase
The Department of Labor (DOL) has increased posting penalties by more than $500. The penalty increase impacts three posting regulations: Family and Medical Leave Act, Job Safety: It’s the Law (OSHA), and the Employee Polygraph Protection Act.
The January final rule also states that DOL expects states to increase their fines to match those at the federal level. The penalty for not posting the Equal Employment Opportunity is the Law poster is expected to increase, as well.
Precision Payroll provides both federal and state posters to clients at an affordable price. Contact Kiran Waheed at firstname.lastname@example.org
See a list of the posting regulation fines on the website >>
OSHA Requires Posting
of Form 300A
While the new requirements for recording and reporting workplace injuries to OSHA were effective August of 2016, postings of this data at the workplace via Form 300A is still required. The form must be posted from February 1 through April 30.
The OSHA 300A form summarizes the kind of accidents the facility had in the past year. “This form was intended to educate the employees of the nature of injuries that are happening in their workplace,” says Leslie Day, PPA’s Director of Human Resources Consulting Services.
All establishments with 250 or more employees in industries covered by the recordkeeping regulation must post injury and illness information to OSHA through Form 300A.
Some industries are exempt from this requirement; click here to see the list